Customers can now rent iPhones, iPads, Macs, and Apple Watches with flexible yearly upgrades.

HYDERABAD — In a major shift in how consumers access flagship hardware, Apple has officially launched a comprehensive device leasing initiative called the "Apple Upgrade" program. Now live across Apple retail locations and online storefronts in the United States, the plan allows customers to rent iPhones, MacBooks, iPads, and Apple Watches instead of buying them outright.

The rollout follows recent price increases across Apple's lineup, triggered by escalating component expenses linked to the ongoing AI infrastructure boom. By replacing its legacy iPhone Upgrade Program and iPhone Payments options, Apple is broadening its subscription-based hardware model across virtually its entire ecosystem.

How the Apple Upgrade Program Works

Powered by fintech provider Klarna, the Apple Upgrade plan offers streamlined online and in-store approvals. The sign-up process requires only a soft credit check, ensuring that an applicant's credit score remains unaffected during evaluation.

Depending on the device tier, customers can select flexible lease agreements:

• iPhones & Apple Watches: Available on 12-month or 24-month lease terms.

• Macs & iPads: Available on 24-month or 36-month lease terms.

At the end of the designated lease period, subscribers have three choices:

1. Upgrade: Trade in the current model for the latest-generation device without owing additional balance.

2. Buy: Keep the device by paying off the remaining value in a single final installment.

3. Return: Hand back the device and end the monthly subscription.

Additionally, users can lower their monthly payments from day one by trading in eligible older devices via Apple Trade In during enrollment.

Monthly Pricing Breakdown

Apple has established starting monthly rental rates across its standard hardware portfolio:

Global Expansion & Market Context

Industry analysts expect Apple to expand the leasing program to international markets in the coming months as global consumers adjust to recent price increases.

Hardware subscription models have seen mixed results historically. In India, for instance, Samsung previously experimented with a "Smart Upgrade" plan requiring users to cover 70% of the phone's cost upfront or via EMIs, with an option to pay the remaining 30% or trade in after a year. However, that scheme struggled to gain traction against widely accessible zero-cost EMI offers.

By eliminating hefty upfront commitments and integrating friction-free annual upgrades, Apple aims to make high-end consumer technology accessible to a broader audience facing macroeconomic pressures.